Fannie Mae and Freddie Mac are continuing to be criticized by the public.  Having dealt with both recently, I’ve found these quasi-goverment entities are both heavily aggressive and not a friend of the consumer.  It is true, that you may get a good deal on some of these homes but the best thing to do is Buyer Beware.  These homes are sold under the “As-Is” umbrella but it is not always as it seems.  One of the homes I dealt with hid the fact that the furnace did not work and hadn’t worked since 2008.  Having talked to the contractor that winterized the home, this was a known fact.  Luckily,  knowing one of the only ways you can get out of one of their contracts, the buyer bailed.  Even weeks after, the listing does not show this defect in the property, even though they received a copy of the inspection company’s report.  This is a material defect in the property that is not being disclosed.

Backing up, how does this happen?  Well first of all, being a quasi-governmental entities, they are not be closely tracked by the government.  Go figure.  They are tasked with disposing of assets that are owned by themselves.  As part of that disposal, they want to get the most out of the homes as they can to save the government money.  Okay that sounds like a good idea.  And since it is taxpayer’s money that is being lost, they act as though they can do whatever they want to pass that loss on to other taxpayers.  Even if what they do flies in the face of most consumer protection acts.  After all who’s going to make them stop?  The government.  Sounds like a conflict of interest, doesn’t it.

The addendums that are being used, essentially tell you that whatever purchase and sale documents you have are nice but their addendum “shall control” over yours.  In other words, all of the consumer protections in your state’s documents don’t matter because their addendum rules.  Now, some will say okay you don’t have to sign the addendum but you will not get to purchase the house either.  It’s their way or the highway.  And even though state’s may require “As-Is” properties to be clearly designated as such, these homes rarely state that until you get their addendum.  To further bully their way through the process, one addendum gave us 48 hours to get it signed and returned the other gave us 24 hours or they will negotiate with another party.  They do state you have the right to have an attorney review the twenty plus page document but have you ever tried to get an attorney to review the documents, give their opinion of the documents and still have time within a 24-48 hour period to answer back?  Probably not going to happen.  Oh and the time does not stop for weekends to try that on with attorneys.

Then let’s say everything is okay, the inspection periods are stated usually at ten days.  Not bad, but if the home is winterized, the time does not wait for them to have the home de-winterized.  On a Fannie Mae and another Freddie Mac home, the de-winterization process took five days to get done or half of the inspection period.  When asked about this, their representatives had to think about it and guess what, time was still running out during that process.  Abusive, who are you going to tell?  Another thing they crammed down on the buyers is you have to use their escrow company (they were told this after the addendum was signed) who, by the way, signs for Fannie Mae or Freddie Mac.  Do you think that is a conflict of interest?  Again, who are you going to tell.  You need to make sure your real estate professional is on top of the addendum or you may get sunk.

These are extremely adversarial processes and they don’t work on weekends or federal holidays and their timing does not stop during those days.  So Be Careful when dealing with them.  You may get a great deal on a house but feel like you’ve just been run over by a truck.

It occurs to me that there are some definite differences between the big box real estate companies that you always see in the media and the smaller firms that are in the market.  The big firms make you fit into their box and some make you qualify with them before they will even take you out to see houses.  Oh and you have to sign an agreement to only use them.  They are great in the neighborhoods that they operate in as they are promoted as “neighborhood experts” but what happens if you don’t exactly know where you want to live and want to see other areas.  Hmmm, could be a problem.  The other issue is just because your friend, relative, neighbor is an excellent realtor for the big box real estate company where you are, does that mean that the person on the other side of the country is equally as good.  There are no guarantees as to the competence of realtors in a big box real estate company.  So it is imperative that buyers get a hold of “Buyers Realtors” in the community that they are looking, to find someone that is willing to work for you before you move.

What are “Buyers Realtors”?  These are agents/brokers, states like to mix these terms so I’ll call them realtors, who work mainly with people looking to buy a home.  Most of the big box real estate buyers realtors are again neighborhood experts that know everything within their neighborhoods.  But, cross over into another neighborhood or city and most won’t know as much as someone that works in that area.  The smaller company buyers realtors will go wherever they need to and may not know as much minutia about an area but will know about or be able to direct you to the website that can give you the information.  Ever wonder about schools, gyms, parks, in different areas?  All of this information is available and a good buyers realtor will get it to you.  There have been an occasions when someone doesn’t know the different communities and aren’t really sure where to live but they work in downtown Seattle, for instance.  What happens then?  Think a neighbor expert will know where you want to live?  Well certainly…in their area.  What if it’s not convenient or you want to use mass transit and it is not where you want to be?

Here are some things that buyers should consider: First, who’s going to know more about a variety of areas in the general vicinity of where they work?; Secondly, how soon is the relocation planned for; Thirdly, who is able to give you insights into the different areas that you are interested in; and Finally, who wants to assist you.  Many of the websites out there are good for looking up properties and most will have a realtor attached to them, that will contact you.  Don’t be afraid of talking to someone about what you want.  It is one of the biggest purchases that you make in life so get someone that can help you find the home that you really want.  As I said earlier, find someone to work with before you move.  In this way, you will find out how much they know and what their ability is to look outside their office area.  Depending on the realtor, you may even be able to eliminate some areas without even being there yet with the information that you get from them.  If you like to get paper resources, some firms will send you “relocation packs”  which are filled with some information about the areas that you might want to consider.

Good hunting!

Please let me know if I can assist you.

Woodinville is often know for their quiet living in larger homes and lots then you would find in more urban areas.  The other day, I had a chance to visit one of the area’s hot spots, Big Daddy’s Place in Woodinville.  What  a fun place to spend an evening with their featured entertainer Doctor funK, a ten-piece band that played lots of oldies but goodies.  They have live entertainment five nights a week, but that’s just part of the appeal.  Not only can you groove in the night, but they also serve breakfast, lunch, dinner and cater in their surrounding area.  We had some great appetizers during the show too.  There’s plenty of space for dancing the night away or just listening to some great music. You can also play pool, darts or video games.

On Saturday’s you can  join their complimentary wine tour aboard the Big Daddy’s bus, after eating there during the week, of the 80+ Woodinville Wineries and tasting rooms.  The tour runs from noon until six so it will be a great way to see the local wineries.  You better book a reservation though, as seats fill up fast.  Ask your server about the tour when you’re eating there.

So if you want to have some fun times in Woodinville, whether you live there or not, head for Big Daddy’s Place and enjoy the yourself.

Hey all you beer lovers!  It’s time for the ever popular Seattle International Beerfest 2011.

This July 1st -3rd  the Seattle Center will be the place to be to satisfy even the most discerning beer palates.  There will be beer from fifteen countries that will be on display and available for your tasting.  How many of the over 150 different beers do you think you’ll be able to taste over the three day time.  Just remember to bring your designated driver, poor soul, and pace yourself through the beers.  Just go to the website and you to can purchase your tickets to attend the event.  Here’s the skinny from the website:

How much does it cost to get in?
$20 ONLINE/ADVANCE – (BUY HERE)
– Faster entry line for advance purchasers

$25 AT THE GATE
- Good for 10 beer tickets and official SIB glass.
- Additional tickets are just $1 each. Each serving is 4oz.
- Beers cost 1 to 6 tickets, depending on how much it costs us.
- Prices are NOT based on rarity.
- Free re-entry all weekend (must have glass & wristband)
- We also offer FULL PINTS for 3 tickets ($3) at the GRANDE BEER GARDEN.

- There are a lot of 1-ticket beers, so don’t worry if you’re on a budget.
- Tickets are non-refundable.

- $5 cover for non-drinkers (includes free N/A bevs.)

Sorry but the VIP tickets are all sold out so your choices are to buy online or at the door.  If you buy online, you can purchase five more beer tickets for the same cost.

If you can’t get enough just through the tasting, go to the Grande Beer Garden where you’ll be able to get a pint of Pilsner Urquell for only $3.  That’s right not a schooner, tall or whatever the restaurants may call them but an actual pint of beer.   It’ll make you think you’re in Europe tossing down a beer in your local pub.

If you miss the beerfest in Seattle, guess what?  You can catch it in Portland on July 15th – 17th!

Don’t miss this event!

Just thought I’d pass on this new program from the Department of Housing and Urban Development that can help homeowners save their properties.  I received it from one of our mortgage teammates, Steve Lawson of Cobalt Mortgage (see his contact information below) and it just goes to show that having great teammates is a huge advantage for our clients.  His email follows:

Hello:

Many of us know someone we have worked with who has fallen on hard times with the economy.  Many have lost their homes in foreclosure already.  For those who have struggled and still retained their home until now, a new program may help.  See below for details.  Emphasize the importance to enroll soon.  The deadline is July 22. 2011.

Please forward this information to anyone you know in need of assistance.  I have very limited information on this since I just received an e-mail from HUD today.  The web page should have much more information.

Thank you for your continued support!!

If you want to get from one side of the state to another, the best routes are the interstate highways, I-5 & I-90.  They give you the fastest, biggest and most maintained routes.  Once you get to the right region that you want to see, you can then take more scenic routes to get away from the mass motorways.

Now, outside of those mass migration interstate highways, there are several others Washington highways that give you less speed but more things to see.  If you want to see the coast of Washington then SR -101 is the way to go.  You can take this highway from the northern tip of the Olympic Peninsula all the way down along the coasts of Oregon and California.  Yes, it is slower but you get to see the all of the great coastal towns and communities.  You’ll get to see the rocky crags, white and grey sand beaches, different size surfs, fishing towns, tourist towns and a meet a lot of great people.  Heading east from Seattle, you can take: the North Cascade highway SR-20 that will take you through the northern mountains and upper part of the state; SR -2 will take you to some great skiing at Stevens Pass and pass through Leavenworth, a great stopping place that is modeled like an alpine village and the northern fruit growing areas surrounding Wenatchee; farther south is SR-12 that will take you just past Mount Rainier, the highest peak in Washington, and into the agricultural communities in Yakima and the wine communities all the way down to Walla Walla, home of the famous sweet onion; and last but not least is the Lewis and Clark highway SR-14 that runs along the Washington side of the Columbia River.

There are other Washington highways, so if you run into them just remember the number rule and you will be able to navigate throughout the state.

I was recently asked by a client where they could travel from Seattle to see some interesting things.  Having lived in Washington all of my life, I decided to put together some places that have been fun to go both near and far.  This is not an all inclusive list as that would take too long but there are some great places to go and have some fun.

If you want a nice quiet place to stay and have spa treatments, then Salish Lodge is a great place to go.  Salish is on the way up to Snoqualmie Pass on I-90.  It’s not cheap but you can have great meals and fun spa packages.  They have two large hot tubs that can fit a large amount of people or if you want some privacy, you can just get a jetted tub in your room that can fit two people.  You can also make it a day trip and see Snoqualmie Falls while eating a huge breakfast or dinner at the lodge that they are famous for.

For  a little longer trip you can go to down I-5 and visit Portland, OR in a little over 3 hours.  Here’s a tourism site HelloPortland that you can check out.  It’s an interesting city and there’s good restaurants and you can get an urban experience that has a little different flavor than Seattle.  During much of the year, they have concerts in the park in downtown that many Oregonians love to go to.  Like to read, one of my favorite places there is Powell’s Books in downtown.  It covers an entire city block and they actually have maps to guide you around the store.  You can spend hours there and sometimes get lost, not that I got lost.

A little closer to home is Leavenworth in the North Cascades.  It is a city that is Bavarian styled with lots of shops and everything is pretty much walking distance.  There’s one motel in town that has good breakfasts and they have a person that blows a big person sized  horn on the deck.  Just before Christmas, it is a destination that many people like to go just to see the decorations and the tree lighting.

Heading west from Seattle you can go to Ocean Shores and stroll on the beach or rent horses to ride on the beach or just sit back and relax.  This is one of the areas that gets most visited on the Washington coast.  If you like camping or rooming in a motel, they have both available.

While traveling down to Oregon you should stop and see either Mt Rainier, Washington’s highest mountain or Mt St. Helens just down a little farther south on I-5.  This is the mountain that erupted 30 years ago, last year.  I was living in Selah, just outside of Yakima and the ash cloud from the eruption was so large. that it was all you could see in the horizon.  It looked like a black cloud that slowly came toward you like people envision the end of the world.  We ended up getting a little over a foot of ash that had the consistency of fine sand.  You can still buy products made out of the ash from the volcano.

In the northeast corner of Washington on the Olympic Peninsula is Neah Bay where during the salmon season, you can get a charter out into the Pacific Ocean to catch a salmon.  You can also see one of our largest lakes in the Olympic National Park called Lake Crescent and visit the nearby hot springs in Sol Duc.

Another great place to visit are the San Juan Islands.  To get there you can take private flights or hop the ferry in Anacortes.  From there you can get to San Juan, Lopez, Shaw and Orcas Islands.  If you stay to long on the ferry you’ll get to Vancouver Island in British Columbia.  There are all kinds of things to see there and do on the various islands from hiking to boating or see if you can see a wandering Orca pod.

Speaking of British Columbia, you can also take a trip to our neighbors to the north and visit Vancouver B.C. in just about 3 hours.  Although being in Canada is much like being in the U.S., there’s a flavor of what it’s like being in Europe.  It is a very international city with lots of fun sights and many great restaurants.  One of the most fun places to visit there is Stanley Park where there is something for everybody to see or do.

Whew, I think I’ve covered all of the directions that you could go.  But, you could visit also visit the wineries in Woodinville or go to eastern Washington in the region from Yakima to Walla Walla.  That region in Washington is the same latitude as the wine growing region in France so much of our wine industry has vineyards there.

Needless to say, Washington is a mecca of things to do, with something for everybody who has a little time to explore.

The Seattle International Film Festival(SIFF) is here for another year of the second longest running film festival in the country.  From May 19th through June 12th you’ll be able to see over 400 films from many countries in unique theaters.  This year there are multiple Countries, North American and United States premieres along with many events that go along with them.  This long running festival is not associated with the mega theaters so you’ll get to see films in theater’s like the Egyptian, Admiral, Cinerama and Harvard Exit to name a few.  There are films in many different genre’s so whatever you’d like to see, you’ll probably be able to find it.

As always, the Seattle International Film Festival is focused on showing works by independent filmmakers and actors that might not get shown in the mega theaters.  The films may have a different slant on movies than what you are used to but, expanding our universes is a good thing.  You’ll also get to see how for example comedy is viewed in different cultures.  Ever wonder why someone is laughing but you don’t get the joke?  Well take in a comedic movie from a different country and see what you’re missing.

SIFF Theater at McCaw Hall

If this festival is too short for you or you’d like to see more independent movies, SIFF even has it’s own theater called the SIFF theater located in McCaw Hall in the Seattle Center.  They will be showing movies throughout the year at a really great facility so check back with SIFF.

There are also ways for you to become a part of SIFF so if you like the festival or the promotion of independent film, filmmakers and actors you can be a part of this festival and the creativeness on an ongoing basis.  If not, just find a movie, sit back and enjoy some of the most unique entertainment brought to this area.

Most people like either Costco or Sam’s Club, but not both.  Mostly it seems like it was whatever they got used to either by living here or by moving here from another region.  Our friends from the South or East seem to like Sam’s Club because that’s where they’ve always gone.  Out West, it’s Costco.  Now both stores have more stuff than you possibly need but you can’t stop yourselves from buying.  It just seems like such a good deal to buy sixty rolls of toilet paper that will take you three months to use up and pay for all at once, rather than waiting.  But we can’t resist. Both stores are generally general merchandise and groceries with some large ticket items that vary depending on the season.

Now for those that prefer Sam’s Club that was created by the Walton family, who are also famous for Wal-Mart, there are three stores in the greater Seattle area, North Seattle, Renton and Auburn.  For an annual membership fee of between $35 – $100 depending on the type of membership you want, you can shop to your hearts delight.

For Costco that started out as Price Club in California and started their first Costco in the Seattle area, the annual membership fee is basically $50 with some additional fees for additional cards on some business account.

Both stores seem to sell basically the same items that, depending on who you talk to, you seem to get better deals at the different stores.  In any event, you should try both and see which you like best.  Spending money to save money is some of the most fun people have these days.  The stores are even social gathering places and you sometimes see friends that you haven’t seen in a while.

There are many big box stores in the region that are more specialized like Ikea, Home Depot, Lowe’s, and the electronic mecca in Renton, Fry’s.  I’m sure there are many more and would like your comments on which you like the best.  Have a great time at the box that you like the best.

A news item today in the Finance section of Yahoo, showed a news article in the New York Times reporting housing might take another blow as President Obama’s administration is considering stopping the guaranty of larger home loans.  It quotes the “Obama administration’s position paper on reforming the housing market. “Larger loans for more expensive homes will once again be funded only through the private market,” it declares”.  Should the administration continue on this move the results could additionally weaken the already weak housing market.  Upper end homes valuation will fall in the market as new buyers may not be found.  The prognostications are that the interest rates on upper end homes will climb and will require more funds up front and qualifications will tighten as private funding will get tougher.

Typically, the upper end homes were the ones to continue to be traded as they were upper middle income earners or higher that could continue to afford different homes even during an economic downturn.  This group generally consisted of people that would continue to have good jobs even during the slow periods of the economy.  Now if they stop buying houses as the down payment qualifications rise, the upper housing market might be littered with foreclosures and short sales that have plagued the country.

So what happens if you live in an area where the average home is in that category?  Move!  Well not really, but you might want to consider not moving for the foreseeable future.  With an already weak economy and reported losses in value across the country, it is not the time to change the market in a negative way.  If you think about it and see how this could affect the housing market, it may also cause severe damage to the overall economy.